Meta has fined Rs 213.14 crore by the Competition Commission of India (CCI).
Meta has been fined for abusing its position in relation to WhatsApp’s 2021 privacy policy update.
WhatsApp’s privacy policy wasn’t well received at the time of roll-out and was even delayed due to the backlash.
Meta has fined Rs 213.14 crore by the Competition Commission of India (CCI) for abusing its position in relation to WhatsApp’s 2021 privacy policy update. The messaging platform had made it mandatory for users to share certain data with the platform in order to access the app.
However, CCI in its order said that it should have never been a pre-condition. The penalty is a result of how the policy was implemented and the users data was collected and shared with other platforms.
“Meta Group operating through WhatsApp was found to be dominant in the market for OTT messaging apps through smartphones in India. Furthermore, it was also found that Meta holds a leading position compared to its competitors in online display advertising in India,” CCI said in a release.
Also read: India blocks WhatsApp from sharing user data with other Meta entities, issues Rs 214cr fine
WhatsApp’s privacy policy wasn’t well received at the time of roll-out and was even delayed due to the backlash. It also led to the popularity of other messaging apps like Signal and Telegram. It had also led to demands of strict data protection law in India.
The CCI took note of the situation and ordered its investigative arm, the Office of the Director General, to investigate the policy. WhatsApp had challenged the probe in the Delhi High Court but now is on the receiving end of the order.
The CCI said that 2021 policy update by WhatsApp was a on a “take-it-or-leave-it” basis. It implemented unfair conditions under the Competition Act.
“Given the network effects and lack of effective alternatives, the 2021 update forces users to comply, undermining their autonomy, and constitutes an abuse of Meta’s dominant position. Accordingly, the Commission finds that Meta (through WhatsApp) has contravened Section 4(2)(a)(i) of the Act,” it said.
In the latest development, a Meta spokesperson said, “We disagree with the CCI’s decision and plan to appeal. As a reminder, the 2021 update did not change the privacy of people’s personal messages and was offered as a choice for users at the time. We also ensured no one would have their accounts deleted or lose functionality of the WhatsApp service because of this update.”
They further shared that the update was about introducing optional business features on WhatsApp and that they had shared how the platform collects and uses data. The spokesperson added, “WhatsApp is able to do all of this because it offers services supported by Meta.”
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